What Were The Causes Of The Great Depression

In 1929 a severe worldwide economic depression known as the "Great Depression" began. The Great Depression lasted until the late 1930s, early 1940s. The depression started in the U.S in September of 1929 with a decrease in the stock market that later collapsed on October 29, 1929.
In the 1920's the United States economy was great . Stocks were bought using credit without worry because values kept growing. In the 1920's all investments did well. During this time period there were not government regulations on the purchase and sale of stocks, the value of the stocks showed little the actual health of the specific industry issuing the stock. Starting on September 3, 1929, stock prices rose and then dropped sharply. This continued throughout September and into October. On October 24th 13 million shares changed hands and values fell. Tuesday, October 29, 16 million shares were put up for sale without buyers. The stock market collapsed. The collapse of the U.S stock market had devastating effects in almost every country. It affected the lives of every American rich and poor. There were many reasons that caused the Great Depression. The stock market crash that occurred on Black Tuesday, October 29, 1929 was one of the major causes that led to the Great Depression but it wasn't the only reason. America's entry into War World II
The depression and the recession were both preceded by rapid credit expansion and financial innovation that led to high leverage. The credit boom in the 1920s was more national as opposed to the 2004-2007 boom which was global. Funding problems played a key role in the financial sector transmission in both episodes. Concerns about the net worth of financial intermediaries were at the root of both crises, although the specific mechanics differed given the financial system's evolution. During the Great Depression, bank deposits were lost as banks